OTTAWA, Dec 6 (Reuters) - The Canadian government said on
Thursday it was reviewing an independent report on the cost of
the F-35 Joint Strike Fighter program, but denied that it had
decided to cancel its planned purchase of 65 of the Lockheed
Martin Corp warplanes.

The CTV network reported earlier that the cost of Canada's
planned F-35 purchase was set to soar in cost and the government
would start looking at alternative planes.

The media report was the latest embarrassment over the F-35
for the Conservative government, which announced in July 2010 it
would buy 65 of the Joint Strike Fighters for C$9 billion.

Ottawa consistently brushed off critics who said the figure
was too low, but had to launch a formal review of the project in
April after a spending watchdog said the initial decision to buy
the jets had been based on bad data from officials who
deliberately downplayed the costs and risks.

CTV, citing unnamed sources, said the government would next
week release an independent study showing the cost of buying and
maintaining the jets was in fact around C$40 billion ($40.4
billion), much higher than the initial estimate of C$25 billion
for purchase and maintenance.

The television network did not say what time period the C$40
billion covered. The C$25 billion estimate was for 20 years.
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